Penalty for delay with provision of final service charges settlement in case of rent of flat in Czech Republic.
Obligation to provide billing of the utilities and services within 4 months of the end of the billing period
The lessor (owner) of the flat is obliged to provide the lessee in accordance with Act No. 67/2013 Coll., which regulates some issues related to the provision of services connected with the use of flats and non-residential premises in the house with flats, as amended by Act No. 104/2015 Coll. (hereinafter referred to as the “Czech Services Act”) settlement (billing) the actual amount of costs and advances for individual services (service charges and advance payments) for the billing period and deliver the settlement (billing) to the lessee within 4 months from the end of the billing period and within this period to make the financial settlement itself, unless the Czech law provides differently. The landlord, as a service provider, must state in the settlement (billing)the actual amount of service costs broken down by service provided with all the necessary requisites, including an indication of the total amount of monthly service advances received so that any differences in settlement are clear and controllable in terms of negotiated ways and rules for settlement (billing).
The Czech Services Act also regulates other issues related to the provision of services related to the use of flats and non-residential premises in a dwelling house (hereinafter referred to as "services") and the procedure for determining service, distribution, billing and settlement costs. The Czech Act on Services also applies to non-residential premises if there is non-residential space in the house with apartments; however, the Czech Services Act does not apply to services that the lessee, as the recipient of the services, accepts without the participation of the service provider.
Pursuant to Section 3 (1) of the Czech Act on Services, the services in particular are the supply of heat and centralized provision of hot water, the supply of water and the discharge of waste water, the operation of lifts, the lighting of common areas in the house, the cleaning of common areas in the house, the removal of waste water and the cleaning of pits, radio and television reception, chimney operation and cleaning and municipal waste disposal.
Penalty for delays in providing settlement (billing) of the service charges in Czech Republic
If the landlord, as a service provider, fails to comply with the above mentioned obligation, in particular if the landlord, as a service provider fails to deliver the settlement (billing) of the service charges in due time, he is obliged to pay the tenant a penalty, unless the fulfillment of the obligations within the stipulated period was not justifiable or if the tenant caused the delay with the deadline. If the amount of the fine has not been negotiated, the amount of the fine is CZK 50 for each day of delay. The amount of the fine may be agreed by the landlord as a service provider with at least a two-thirds majority of tenants in the house or decided by the cooperative or the community. The agreed fine may not exceed CZK 50 for each day of delay.
For more information, contact us at:
JUDr. Mojmír Ježek, Ph.D.
ECOVIS ježek, advokátní kancelář s.r.o.
Betlémské nám. 6
110 00 Praha 1
About ECOVIS ježek advokátní kancelář s.r.o.
The Czech law office in Prague ECOVIS ježek practices mainly in the area of Czech commercial law, Czech real estate law, representation at Czech courts, administrative bodies and arbitration courts, as well as Czech finance and banking law, and provides full-fledged advice in all areas, making it a suitable alternative for clients of international law offices. The international dimension of the Czech legal services provided is ensured through past experience and through co-operation with leading legal offices in most European countries, the US, and other jurisdictions. The Czech lawyers of the ECOVIS ježek team have many years of experience from leading international law offices and tax companies, in providing legal advice to multinational corporations, large Czech companies, but also to medium-sized companies and individual clients. For more information, go to www.ecovislegal.cz/en.